Why are some states in India able to facilitate foreign capital inflows better while others are not? This book addresses the socio-political factors such as ideas and interests of political actors, which produce the different levels of foreign direct investment (FDI) in states of India. It studies the causal role of disparate state-society relations in the evolution of institutions facilitating and regulating FDI inflows in the states through a comparative case study on the manufacturing industries of Tamil Nadu and Odisha.

'Sojin Shin’s study broadens our understanding of development in Asia. It highlights the local variation in state-society relations and institutional change that promotes or discourages foreign direct investment, as observed in the more politically inclusive Tamil Nadu and the largely exclusionary state of Odisha. In doing so, the study brings attention to the considerable importance of non-market factors that drive firm decisions to locate or dismantle investment projects. It is equally valuable for drawing out the economic linkages between East and South Asia. This book is a welcome addition to scholars of Asian political and economic development.'

Sooyeon Kim - National University of Singapore

'Sojin Shin’s study offers a rare glimpse of the struggles and contests around FDI promotion in two important states of Tamil Nadu and Odisha. She shows how and why state actors embody different ideas, and negotiate with different elements of mobilized society in the two states. In essence, Sojin Shin adds a much-needed political flavor to the dynamics of FDI implementation in India. Societal responses to FDI policies and varying state-society linkages come alive in this important book.'

Aseema Sinha - Claremont McKenna College, California

'Why do some FDI projects succeed and some fail? A perplexing question everywhere, but particularly so for India where everything and its opposite can be true at the same time. Sojin Shin combines deep scholarship, sharp analysis and rich political economy insights to help us find an answer. A masterly book that policy makers and potential investors must read.'

Duvuuri Subbarao - Former Governor, Reserve Bank of India